Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Hedging its Bets
Bali Hotels, Bali Villas and Bali News from
Bali Hotels
Bali Villas
Special Deals!
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Bali Update
Subscribe to our free weekly newsletter!
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

++62 361 286 283

++62 361 286 284

U.S.A. Fax:(toll free)

U.K. Fax:

Australian Fax:

++62 812 3819724

Bali Discovery

Bali News

Hedging its Bets

Garuda Signs a Cross Currency Swap in Anticipation of Swings in International Currency Exchange Values

Bali News: Indonesia, Cross currency Swaps, hedging, Garuda Indonesia, Bank Negara Indonesia, State Owned Companies, Suwoko Singoastro, exchange rate fluctuations
Click Image to Enlarge


Bank Negara Indonesia (BNI) and Garuda Indonesia have entered into a currency swap agreement in anticipation of continuing fluctuations in the exchange value of the Indonesian Rupiah.

As reported by, the move by the National Flag Carrier represents a rare move by a State-owned company in undertaking a hedging financial instrument. The air carrier earns revenues in both Rupiah and U.S. Dollars, while many of its expenses (e.g. fuel and spare parts) are tied to the U.S. Greenback.

BNIís director of treasury and international finance, Suwoko Singoastro said the bank was cooperating with Garuda via a cross currency swap (CCS) to a value of Rp. 500 billion (US$41.6 million) for a period of 3 years for serving their principal and interest on their loan portfolio.

ďThis is to mitigate against the risk of fluctuations in the exchange value of the rupiah when mismatches occur in the flow of two currencies,Ē Suwoko explained.

He said hedging is done to confront uncertainty in the international currency market that can have a negative impact on the Indonesian domestic economy.

There is an expectation that the U.S. Federal Reserve will increase the interest rate that could result in withdrawal of foreign currency form emerging markets.

The hedging transaction freezes values at the point in time when the cross currency swapwas established, in this instance †June 9, 2014.

According to data from Bank Indonesia, there are only two State-Owned Companies (BUMN) that have undertaken hedging transaction, although BUMN companies are allowed to do so under a regulation introduced in 2013.

Through May 2014, the average amount of foreign currency transaction in Indonesia averaged US$5 billion per day. Meanwhile Singapore averages US$300 billion each day, while Thailand and Malaysia averages foreign exchange transactions of US$12 million per day.

© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to


Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!

Our [Privacy Statement] explains how we handle the data you are providing.

Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!

or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
3 Mn to Visit Tanah Lot by Yearís End
Tanah Lot Hits Record Number of Visitors Despite Declining Domestic Visitor Totals
Clean and Green Bali
Ministry Of Energy and Asian Development Bank Sign MOU to Establish Clean Energy Center in Bali
An Obligation to Our Children Avoided
Underreporting of Hotel & Restaurant Taxes Estimated to Cost Badung Regency US$229 million Per Year
A Law that Few Obey
Lines of Oppostion Being Formed Over Plans to Change Baliís Master Plan and Zoning Law
A Gram Will get You in a Jam
Chinese Woman Sentenced to Five Years for Bringing 0.88 Gram of Methamphetamines through Baliís Airport
Becoming More, Appealing
Former Regent of Klungkung Gets Prison Sentence for Corruption Increased from 12 to 15 Years on Appeal
From Our Kingdom to the Middle Kingdom
Garuda Eying Direct Flights to Bali from Shanghai and Guangzhou
Baliís Space Race
Baliís Provincial Government Committed to Creating More Parks and Public Spaces
Being Understood by Chinese Visitors
Bali Guides Receive Mandarin Language Training
Visa-Free Countries to Indonesia Just Doubled
Nationals of 90 Countries Now Eligible to Visit Indonesia without a Visa
Cruise Control
Indonesian President Issues Decree to Ease Private Yacht Visits to Indonesia
Rolling Up the Welcome Mat
Immigration at Bali Airport Refuses 492 Foreigners Entry to Bali January-September 2015
All [News]!